The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $30 per unit. Variable costs for the casing are $17 per unit and fixed cost is $4 per unit. Cotwold executives would like for the Molding Division to transfer 13,000 units to the Assembly Division at a price of $23 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? Yes No 2. Identify the minimum transfer price that the Molding Division will accept nt Minimum Transfer Price ences

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $30 per unit. Variable costs for the casing are $17 per unit and fixed cost is $4 per unit. Cotwold executives would like for the Molding Division to transfer 13,000 units to the Assembly Division at a price of $23 per unit. Assume the Molding Division is operating at full capacity. Required: 1. Should it accept the transfer price proposed by management? Yes No 2. Identify the minimum transfer price that the Molding Division will accept nt Minimum Transfer Price ences

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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